BNS has paid dividends since 1832. I absolutely love storied dividend histories like this, BNS has it in spades. The dividend is so ingrained in the culture at this point that I feel very confident the streak will continue. I plan to still be shareholder in 2032 which will mark 200 years.
I like the international strategy Scotia Bank uses to grow the business. This is truly an international company with operations in over 55 countries. I believe focusing on emerging markets for growth while using the Canadian market as an anchor will reward shareholders handsomely over the long term.
My calculated fair value for BNS is $69 which leads me to believe I was able to purchase these shares at an undervalued price. I used DDM, DCF, average p/e, and average yield in the calculations. BNS is currently trading below its 5 year average p/e and above its 5 year average dividend yield. Even though it's had a major run up since last summer's lows, I feel there is some value left.
Assuming a $1US to $1CAN exchange rate, I'm locking in a yield slightly over 4%. As with the KMI purchase I will realize an immediate passive income boost which is expected to grow at a faster pace than what UNS provided. In reality I don't know the exact dividend. Exchange rates fluctuate which I've observed with my TD and EIFZF holdings.
I made a mistake and entered the wrong amount when I placed this limit order. I actually meant to type $57.83. Oh well it's only a $2.90 difference. I quickly placed the order after a 17 hour work day, I usually pay close attention to details like that. It won't happen again.
New Purchase - SBSI
Southside Bancshares is the only stock I DRIP. I do this because I want to increase my share count, but I don't want to throw new money at it. I plan to keep the DRIP on for now.
Recent Dividend Increases
General Mills: 15.2% Wow I was not expecting an increase like this! My yield on cost is already 4.1% after just two increases. If I only I had bought more last year.... whoops!
Raytheon: 10.0% Yet another stellar RTN dividend boost. My RTN position has already ballooned to a 5.0% YOC after only 2 increases. I think I had lucky timing with this one though.
Air Products: 10.9% This is exactly why I snatched up APD shares last October. Air Products & Chemicals is a dividend champion with a history of delivering above average dividend growth, 2013 adds to the evidence. YOC is now 3.6%, will it go over 4% next year?
Here's some motivation courtesy of RTN: